T R O U B L E D C O M P A N Y R E P O R T E R Monday, January 29, 2007, Vol. 11, No. 24 Headlines 99 CENT: Case Summary & 20 Largest Unsecured Creditors 710 Romero: Voluntary Chapter 11 Case Summary ACE SECURITIES: Fitch Holds Low-B Ratings on Four Class Certs. ADELPHIA COMMS: Court Okays Stipulation Resolving FPL Note Claims ADELPHIA COMMS: Court OKs Stipulation Resolving U.S. Bank's Claims AMERICAN CABINETRY: Case Summary & 26 Largest Unsecured Creditors ARK #1: Case Summary & 20 Largest Unsecured Creditors ASSOCIATES GROUP: Case Summary & Four Largest Unsecured Creditors BALDOR ELECTRIC: Moody's Holds B3 Rating on $550 Million Sr. Notes BASIC ENERGY: Moody's Rates Amended & Upsized Facility at Ba1 BDO SEIDMAN: Gets Sued by Banco Espirito for $170 Million BOCA CIEGA: Voluntary Chapter 11 Case Summary BURLINGTON COAT: Poor Performance Prompts S&P's Negative Outlook CALPINE CORP: Harbinger Submits $100 Million Alternative Offer CANAL CAPITAL: Todman & Company Raises Going Concern Doubt CAPITAL AUTO: Fitch Upgrades Rating on Series 2006-1 Class D Notes CEP HOLDING: Has Until April 18 to Make Lease Related Decisions CHARTWELL SENIORS: Board Restructures Senior Management Team CHASEFLEX TRUST: Fitch Puts Low-B Ratings on $4.27 Million Certs. COOPER COS: Discloses Proposed $1 Billion Refinancing COPELANDS' ENTERPRISES: Selects Glenn Burdette as Accountants CORPORATE CONNECTION: Case Summary & 20 Largest Unsec. Creditors DELPHI CORP: Court Lifts Stay Letting Cadence Pursue Patent Suit DELPHI CORP: Two Panels Want to File Discovery Motion Under Seal DELPHI CORP: Tower Automotive Wants Stay Lifted to Commence Suit DIANE OZAROWSKI: Case Summary and Four Largest Unsecured Creditors DOV PHARMA: May File for Bankruptcy if Restructuring Fails DURA AUTOMOTIVE: Judge Carey Approves Deloitte & Touche as Auditor DURA AUTOMOTIVE: Judge Carey Approves Deloitte as Tax Advisor DURA AUTOMOTIVE: Gets Court Ok to Assume Lear Settlement Agreement DURA AUTOMOTIVE: Section 341(a) Meeting Will Resume Wednesday ECHOSTAR COMMS: Fitch Holds Convertible Subor. Notes' Rating at B EDDIE BAUER: Defers Special Stockholders Meeting to February 8 ENTERGY NEW: Panel Says Documents Are Not Entitled to Protection FIRST HORIZON: Fitch Holds Low-B Ratings on 8 Class Certificates FLINTKOTE COMPANY: Wants Court to Extend Exclusive Periods FLINTKOTE CO: Wants Until April 27 to Decide on Headquarters Lease FORD MOTOR: Exec Bonuses May Hamper Cost-Cutting Deal with Union FREMONT GENERAL: Fitch Revises Outlook to Negative from Stable G.M. CROCETTI: Case Summary & Three Largest Unsecured Creditors GALAXY MINERALS: Case Summary & List of Known Creditors GAP INC: Company Not for Sale, Interim CEO Fisher Tells Employees GENERAL MOTORS: GMAC's Mortgage Exposure May Hit GM, Analysts Say GENERAL MOTORS: Plans to Sell Allison Transmission to Cut Costs GLOBAL HOME: Judge Gross Extends Exclusivity Period to April 5 GLOBAL HOME: Taps Johnson Associates as Compensation Advisor GLOBAL HOME: Wants Until July 15 to Remove State Court Civil Suits GLOBAL TEL*LINK: Moody's Affirms Corporate Family Rating at B1 GREENPARK RUNKLE: Case Summary & Largest Unsecured Creditor HAROLD LISONBEE: Case Summary & 10 Largest Unsecured Creditors HC CARRIBEAN: Must File Plan and Disclosure Statement by March 15 HEADWATERS INC: Completes Sale of 2.5% Convertible Senior Notes INDIAN CREEK: Chapter 7 Trustee Hires Luce Forward as Counsel LA SPECIALTY: Voluntary Chapter 11 Case Summary LBUBS: Fitch Affirms Rating on $5 Mil. Class N Certificates at BB- LEHMAN XS: Moody's Assigns B2 Ratings on Class A-4 Notes LIBERTY TAX: December 15 Balance Sheet Upside-Down by $28.6 Mil. LIFECARE HOLDINGS: Moody's Junks Rating on $150 Mil. Senior Notes MAVERICK MATERIALS: Voluntary Chapter 11 Case Summary MERRILL LYNCH: Fitch Holds Low-B Ratings on 7 Class Certificates MIRANT CORP: Mirant Lovett Wants More Time to File Plan MOSAIC COMPANY: Potential Earnings Loss Cues Fitch's Neg. Watch MS 1997-XL1: Fitch Holds Junk Ratings on Class G & H Certificates NASDAQ STOCK: Offer Price Hinders Takeover Talks with LSE NEWCASTLE CDO: Fitch Holds Rating on $16 Mil. Class V Notes at BB NEWPARK RESOURCES: SEC Filing Prompts Moody's Stable Outlook NICHOLAS-APPLEGATE: Moody's Junks Rating on $10 Mil. Class D Notes NORTEL NETWORKS: Ontario Court Approves $2.5 Billion Settlement OCA INC: Court Confirms Plan of Reorganization OPIMIAN GROUP: Voluntary Chapter 11 Case Summary PAMELA STOCKFISH: Case Summary & Four Largest Unsecured Creditors PROPEX INC: Inks Second Amendment to Credit Agreement QUIGLEY CO: Wants Pfizer DIP Financing Extended Until August 13 QUIGLEY CO: Asks Court to Move Removal of Actions Period to Aug. 1 SCOTT WILLIAMS: Case Summary & 20 Largest Unsecured Creditors SCOTTISH RE: Rejects Brandes Investment's Proposal SIGNAL PROCESSING: Receives Nasdaq Common Stock Delisting Notice SIL CLEAN: Case Summary & 20 Largest Unsecured Creditors SILICON VALLEY: Fitch Rates $8.9 Million Series 2007D Bonds at B SMART WORLD: Court Confirms Panel's Chapter 11 Plan of Liquidation SOLUTIA INC: Seeks May 7 Deadline to File Notices of Removal SOLUTIA INC: Balks at Panel's Intervention in Calpine Arbitration TERRA CAPITAL: Fitch Rates Proposed Senior Unsecured Notes at B+ TERRA CAPITAL: S&P Rates Proposed $330 Million Senior Notes at BB- TERRA INDUSTRIES: S&P Lifts Corp. Credit Rating to BB- from B+ TIMKEN CO: To Invest $60 Million on Steel Rolling Mill Operations TOWER AUTOMOTIVE: Wants Stay Lifted in Delphi's Case to Start Suit TOWER RECORDS: Committee Hires Keen Realty as Real Estate Advisor TRAINER WORTHAM: Moody's Junks Rating on $10 Mil. Class A-3L Notes U.S. DRY: Inks Merger Agreement with Cleaners Club U.S. DRY: Sells 15.7 Units to 11 Accredited Investors UGS CORP: Siemens Deal May Prompt Moody's Ratings Withdrawal UGS CORP: Siemens Deal Cues S&P's Positive CreditWatch UNIVERSITY HEIGHTS: Wants Plan-Filing Period Extended to July 11 USA COMMERCIAL: Court Confirms Amended Joint Chapter 11 Plan VIA VENETO: Voluntary Chapter 11 Case Summary VISKASE COS: S&P Holds CCC Credit Rating and Removes Neg. Watch WILLIAM SIGMAN: Case Summary & 20 Largest Unsecured Creditors WINTHROP HEALTHCARE: Case Summary & 20 Largest Unsecured Creditors * Cohen & Grigsby Hires Lisa Hofbauer as Estates Group Associate * MorrisAnderson Promotes Larry Hennessy to Principal * Litigation Solution Launches New Legal Notification Services * BOND PRICING: For the week of January 22 - January 26, 2006 ********* 99 CENT: Case Summary & 20 Largest Unsecured Creditors ------------------------------------------------------ Debtor: 99 Cent Stuff, Inc. 1801 Clint Moore Road Suite 205 Boca Raton, FL 33487 Bankruptcy Case No.: 07-10474 Type of Business: The Debtor is a single-priced value retailer of primarily name-brand, consumable merchandise. Chapter 11 Petition Date: January 24, 2007 Court: Southern District of Florida (West Palm Beach) Judge: Steven H. Friedman Debtor's Counsel: Robert C Furr, Esq. Furr & Cohen 2255 Glades Road #337W Boca Raton, FL 33431 Tel: (561) 395-0500 Fax: (561) 338-7532 Total Assets: $5,701,735 Total Debts: $29,064,838 Debtor's 20 Largest Unsecured Creditors: Entity Claim Amount ------ ------------ Bank of America NA $4,900,000 CCS Private Bank M01-800-08-11 414 Union Street Nashville, TN 37219 Blue Ribbon Commodity Traders Inc. $2,427,275 1300 Virginia Drive #145 Fort Washington, PA 19034 Bunzl South Florida $92,880 P.Oo Box 402337 Atlanta, GA 30384 Regent Products $80,040 Digiview Productions/Idb Factors $66,354 J M Dist. $61,950 Sey Culhan Refrigeration & A/C Serv $61,215 Sun Hing Foods, Inc. $60,854 King Zak Industries, Inc. $58,413 Hangzhou Sunrise Imp. & Exp. Co., Ltd $53,786 Magic Creation $53,527 Flowers Baking Co. of Miami $53,118 Jean Philippe Frag, H.C. $51,445 La Fe Food $48,301 Purity Foods $47,478 Deals 4 Less $43,641 CH Robinson Worldwide, Inc. $42,739 Genmert $42,517 Rokeach Foods $41,608 Allied International $41,018 710 Romero: Voluntary Chapter 11 Case Summary --------------------------------------------- Debtor: 710 Romero LLC 201 Mesa Lane Santa Barbara, CA 93109 Bankruptcy Case No.: 07-10093 Chapter 11 Petition Date: January 24, 2007 Court: Central District Of California (Santa Barbara) Judge: Robin Riblet Debtor's Counsel: Robert E Hurlbett, Esq. Steven Pinsker, Esq. Pinsker & Hurlbett 1316 Anacapa Street Santa Barbara, CA 93101 Tel: (805) 963-9111 Total Assets: $4,000,000 Total Debts: $3,996,000 The Debtor does not have any unsecured creditors who are not insiders. ACE SECURITIES: Fitch Holds Low-B Ratings on Four Class Certs. -------------------------------------------------------------- Fitch has taken rating actions on these classes of Ace Securities Corporation issues: Series 2002-HE3: -- Class A affirmed at 'AAA'; -- Class M-1 affirmed at 'AA+; -- Class M-2 downgraded to 'BBB' from 'A' and removed from Rating Watch Negative; -- Class M-3 downgraded to 'B' from 'BB'. Series 2004-HE1 -- Class A affirmed at 'AAA'; -- Class M-1 affirmed at 'AA'; -- Class M-2 affirmed at 'A'; -- Class M-3 affirmed at 'A-'; -- Class M-4 affirmed at 'BBB'; -- Class M-5 downgraded to 'B+' from 'BB'; -- Class M-6 downgraded to 'B' from 'BB-'. Series 2005-HE2 -- Class A affirmed at 'AAA'; -- Class M-1 affirmed at 'AA+'; -- Class M-2 affirmed at 'AA'; -- Class M-3 affirmed at 'AA-'; -- Class M-4 affirmed at 'A+'; -- Class M-5 affirmed at 'A+'; -- Class M-6 affirmed at 'A'; -- Class M-7 affirmed at 'A-'; -- Class M-8 affirmed at 'BBB+; -- Class M-9 affirmed at 'BBB'; -- Class M-10 affirmed at 'BBB-'; -- Class B-1 affirmed at 'BB+'; -- Class B-2 rated 'BB', placed on Rating Watch Negative. Series 2005-HE3 -- Class A affirmed at 'AAA'; -- Class M-1 affirmed at 'AA+'; -- Class M-2 affirmed at 'AA'; -- Class M-3 affirmed at 'AA-'; -- Class M-4 affirmed at 'A+'; -- Class M-5 affirmed at 'A'; -- Class M-6 affirmed at 'A-'; -- Class M-7 affirmed at 'BBB+; -- Class M-8 affirmed at 'BBB'; -- Class M-9 affirmed at 'BBB-'; -- Class B-1 affirmed at 'BB+'; -- Class B-2 rated 'BB', placed on Rating Watch Negative. Series 2005-HE6 -- Class A affirmed at 'AAA'; -- Class M-1 affirmed at 'AA+'; -- Class M-2 affirmed at 'AA'; -- Class M-3 affirmed at 'AA-'; -- Class M-4 affirmed at 'AA-'; -- Class M-5 affirmed at 'A+'; -- Class M-6 affirmed at 'A'; -- Class M-7 affirmed at 'A-'; -- Class M-8 affirmed at 'BBB+'; -- Class M-9 affirmed at 'BBB'; -- Class M-10 affirmed at 'BBB-'; -- Class M-11 affirmed at 'BB+'; -- Class B-1 affirmed at 'BB'. Series 2005-RM2 -- Class A affirmed at 'AAA'; -- Class M-1 affirmed at 'AA+'; -- Class M-2 affirmed at 'AA+'; -- Class M-3 affirmed at 'AA'; -- Class M-4 affirmed at 'AA-'; -- Class M-5 affirmed at 'A+'; -- Class M-6 affirmed at 'A'; -- Class M-7 affirmed at 'A-; -- Class M-8 affirmed at 'A-'; -- Class M-9 affirmed at 'BBB+'; -- Class M-10 affirmed at 'BBB'; -- Class M-11 affirmed at 'BBB-'; -- Class B-1, rated 'BB', placed on Rating Watch Negative. The mortgage pool consists of conventional, first and second lien, adjustable- and fixed-rate residential mortgages. The mortgage loans were acquired by various originators, including Fremont Investment & Loan and Ameriquest Mortgage Company. A majority of the loans are serviced by Ocwen Loan Servicing LLC, rated 'RPS2' by Fitch. The affirmations reflect an adequate relationship between credit enhancement and expected loss and affect approximately $2.57 billion in outstanding certificates. The downgrades of classes M-2 and M-3 of series 2002-HE3 and classes M-5 and M-6 of series 2004-HE1 affect approximately $29.80 million of the outstanding certificates. Select classes from 2005 vintage transactions, with the exception of series 2005-HE6, are placed on Rating Watch Negative, affecting approximately $27 million of the outstanding certificates. The negative rating actions reflect continued deterioration in the relationship between CE and future loss expectations. The transactions affected by the downgrades are generally experiencing monthly losses that exceed the available excess spread, resulting in substantial deterioration of overcollateralization and preventing the OC from maintaining its target amount. As of the December 2006 distribution, the OC for series 2002-HE3 has declined six months in a row and its OC amount of $1.95 million or 2.77% of the current collateral balance is below the target amount of $3.49 million or 4.95% of the current collateral balance. The OC for series 2004-HE1 has been depleted but class B of amount $6.98 million is currently providing CE for class M-6. Three classes from the 2005 vintage transactions were placed on Rating Watch Negative due to early trends in the relationship between serious delinquency and CE. These transactions have delinquency figures above the industry average. In addition, they are generally experiencing monthly losses which have exceeded the available XS and have prevented the OC from maintaining their target amounts. For 2005-HE2, the amount of loans in Foreclosure and REO at 21 months seasoning as a percentage of the current pool balance is 7.03%. The subordination of the B-2 class is 1.01%. The XS available to cover losses as an annualized percentage of the current pool balance is approximately 1.07%. The OC has declined four out of the last five months and its OC amount of $5.88 million or 1.01% of the current collateral balance is below the target amount of $7.32 million or 1.26% of the current collateral balance. For 2005-HE3, the amount of loans in Foreclosure and REO at 20 months seasoning as a percentage of the current pool balance is 7.32%. The subordination of the B-2 class is 1.97%. The XS available to cover losses as an annualized percentage of the current pool balance is approximately 0.96%. The OC has declined three out of the last five months and its OC amount of $3.89 million or 0.63% of the current collateral balance is below the target amount of $5.45 million or 0.89% of the current collateral balance. For 2005-RM2, the amount of loans in Foreclosure and REO at 19 months seasoning as a percentage of the current pool balance is 6.40%. The subordination of the B-1 class is 4.15%. The XS available to cover losses as an annualized percentage of the current pool balance is approximately 1.06%. The OC has declined five months in a row and its OC amount of $5.35 million or 1.92% of the current collateral balance is below the target amount of $6.51 million or 2.33% of the current collateral balance. The pools are seasoned from a range of 48 to 15 months. The transactions have pool factors ranging from 10% to 69%. Fitch will closely monitor the relationship between XS and monthly losses for those transactions in the upcoming months. If the losses continue to exceed XS, the ratings will be reassessed. ADELPHIA COMMS: Court Okays Stipulation Resolving FPL Note Claims ----------------------------------------------------------------- The Honorable Robert E. Gerber of the U.S. Bankruptcy Court for the Southern District of New York approved a stipulation between Adelphia Communications Corp. and its debtor-affiliates and the noteholders of Fort Myers Acquisition L.P., concerning 10 proofs of claim arising from a $108,000,000 term note issued on Oct. 1, 1999 by Fort Myers. In accordance with the Bar Date Order dated Oct. 24, 2003, West Boca Security Inc. filed these 10 proofs of claim. Ft. Myers is an indirect, wholly owned subsidiary of Olympus Communications, L.P. Olympus pledged certain collateral to secure Ft. Myers' obligations under the Note. The ACOM Debtors' First Modified Fifth Amended Chapter 11 Plan classifies the Note as Claim Class SD 7 -- FPL Note Claims. The FPL Note was assigned to West Boca and subsequently transferred to Lehman Commercial Paper, Inc. On May 17, 2005, the ACOM Debtors sought to disallow nine of the FPL Note Claims on the grounds that they were duplicative. On June 21, 2005, the Court disallowed Claim Nos. 16069, 16072, 16077, 16076, and 16111. The hearing to the ACOM Debtors' objection to Claim Nos. 16078, 16070, 16071, and 16112 was adjourned to a date to be determined. Pursuant to the Plan, as confirmed, the FPL Note Claims will be allowed for $127,435,663, in aggregate, comprising: (a) $108,000,000 initial principal; and (b) $19,435,663 represents additional amounts accrued through the Petition Date. In the Court-approved Stipulation, the ACOM Debtors and the Ft. Myers noteholders agree that: (1) Claim No. 16068 will: * be allowed for $127,435,663, in aggregate; * be deemed to have been filed against both Ft. Myers and Olympus; and * otherwise receive the treatment provided for the FPL Note Claim in the Plan. (2) upon the occurrence of the Effective Date of the Plan, Claim Nos. 16078, 16070, 16071, and 16112 will be disallowed and expunged; and (3) the Stipulation will have no force or effect if the Effective Date of the Plan does not occur. About Adelphia Comms Based in Coudersport, Pa., Adelphia Communications Corporation (OTC: ADELQ) -- http://www.adelphia.com/-- is a cable television company. Adelphia serves customers in 30 states and Puerto Rico, and offers analog and digital video services, Internet access and other advanced services over its broadband networks. The Company and its more than 200 affiliates filed for Chapter 11 protection in the Southern District of New York on June 25, 2002. Those cases are jointly administered under case number 02-41729. Willkie Farr & Gallagher represents the Debtors in their restructuring efforts. PricewaterhouseCoopers serves as the Debtors' financial advisor. Kasowitz, Benson, Torres & Friedman, LLP, and Klee, Tuchin, Bogdanoff & Stern LLP represent the Official Committee of Unsecured Creditors. Adelphia Cablevision Associates of Radnor, L.P., and 20 of its affiliates, collectively known as Rigas Manged Entities, are entities that were previously held or controlled by members of the Rigas family. In March 2006, the rights and titles to these entities were transferred to certain subsidiaries of Adelphia Cablevision, LLC. The RME Debtors filed for chapter 11 protection on March 31, 2006 (Bankr. S.D.N.Y. Case Nos. 06-10622 through 06-10642). Their cases are jointly administered under Adelphia Communications and its debtor-affiliates chapter 11 cases. (Adelphia Bankruptcy News, Issue No. 162; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). As reported in the Troubled Company Reporter on Jan. 9, 2007, the Honorable Robert E. Gerber of the U.S. Bankruptcy Court for the Southern District of New York has entered an order confirming the first modified fifth amended joint Chapter 11 plan of reorganization of Adelphia Communications Corporation and Certain Affiliated Debtors. ADELPHIA COMMS: Court OKs Stipulation Resolving U.S. Bank's Claims ------------------------------------------------------------------ The Honorable Robert E. Gerber of the U.S. Bankruptcy Court for the Southern District of New York approved a stipulation between the U.S. Bank National Association, FrontierVision Holdings, L.P. and its affiliates, Arahova Communications, Inc., and Adelphia Communications Corp. and its debtor-affiliates relating to U.S. Bank's alleged tort claims. Under the Court-approved stipulation, U.S. Bank's claims will be deemed allowed pursuant to the ACOM Debtors' First Modified Fifth Amended Plan Chapter 11 Plan of Reorganization. U.S. Bank National Association is the indenture trustee under: (i) seven different series of notes issued by Arahova Communications, Inc., (ii) a series of notes issued by FrontierVision Holdings, L.P. and FrontierVision Holdings Capital Corporation, (iii) a series of notes issued by FrontierVision Holdings, L.P. and FrontierVision Holdings Capital II Corporation; and (iv) a series of notes issued by FrontierVision Operating Partners, L.P. and FrontierVision Capital Corporation. As the indenture trustee, U.S. Bank had filed proofs of claim, some of which are duplicative, against: (a) Arahova Communications, Inc., FrontierVision Holdings, L.P., FrontierVision Holdings Capital Corporation, FrontierVision Holdings Capital II Corporation, FrontierVision Operating Partners, L.P. and FrontierVision Capital Corporation, as issuers, for principal and interest, indenture trustee fees and expenses and indemnification owed under the Arahova Notes, the FrontierVision Holdco Notes, and the FrontierVision Opco Notes; and (b) multiple Debtors for, among other things, alleged wrongdoing by the Debtors under theories of veil-piercing, agency, alter ego, and various torts or other claims. Pursuant to the ACOM Debtors' Amended Plan, these claims will be deemed allowed in these principal amounts, and interest accrued through the Debtors' date of bankruptcy: Claims Principal Interest Total Amount ------ --------- -------- ------------ Arahova Notes $1,712,003,697 $31,513,889 $1,743,517,586 FrontierVision 200,000,000 4,277,778 204,277,778 Opco Notes FrontierVision 328,658,000 10,841,149 339,499,148 Holdco Notes The Plan also provides for the allowance of the Trustee Fee Claims and indemnification rights of U.S. Bank. The Plan provides that claims filed by an indenture trustee for tort or claims other than for principal, interest, fees and expenses against the issuers and guarantors of the respective debt securities under the indentures will be deemed disallowed. Pursuant to the Plan's provisions, the ACOM Debtors desire to clean up the claims register maintained in their Chapter 11 cases. In the Court-approved stipulation, the parties agree that: (a) these U.S. Bank Claims will be allowed pursuant to the Plan: A. Arahova Notes Claims Class (Class SD 6) Claim No. Claim Amount --------- ------------ 494900 $104,420,139 495000 369,994,768 495100 105,118,056 495200 257,520,833 495300 259,861,111 495600 229,593,750 495700 417,008,929 -------------- Total $1,743,517,586 ============== B. FrontierVision Holdco Notes Claims Class (Class SD 8) Claim No. Claim Amount --------- ------------ 494400 $94,216,596 494700 245,282,552 -------------- Total $339,499,148 ============== C. FrontierVision Opco Notes Claims Class (Class SD 9) Claim No. Claim Amount --------- ------------ 495400 $204,277,778 -------------- Total $204,277,778 ============== (b) 18 Claims filed by U.S. Bank are disallowed for being duplicative with respect to the allowed U.S. Bank Note Claims, including: Claim No. Claim Amount --------- ------------ 494500 $1,373,531,620 494600 207,978,431 494800 245,410,758 494300 94,279,450 (c) disallow U.S. Bank's more than 3,100 claims for tort or claims other than for principal, interest, fees and expenses against the issuers and guarantors of the respective debt securities under the Indentures; and (d) the Stipulation will not be effective until the Effective Date of the Plan and will be deemed null and void if: * the Effective Date does not occur; or * the Plan or the order confirming it is reversed or vacated, or is modified in a manner adverse to the treatment of the U.S. Bank Note Claims. About Adelphia Comms Based in Coudersport, Pa., Adelphia Communications Corporation (OTC: ADELQ) -- http://www.adelphia.com/-- is a cable television company. Adelphia serves customers in 30 states and Puerto Rico, and offers analog and digital video services, Internet access and other advanced services over its broadband networks. The Company and its more than 200 affiliates filed for Chapter 11 protection in the Southern District of New York on June 25, 2002. Those cases are jointly administered under case number 02-41729. Willkie Farr & Gallagher represents the Debtors in their restructuring efforts. PricewaterhouseCoopers serves as the Debtors' financial advisor. Kasowitz, Benson, Torres & Friedman, LLP, and Klee, Tuchin, Bogdanoff & Stern LLP represent the Official Committee of Unsecured Creditors. Adelphia Cablevision Associates of Radnor, L.P., and 20 of its affiliates, collectively known as Rigas Manged Entities, are entities that were previously held or controlled by members of the Rigas family. In March 2006, the rights and titles to these entities were transferred to certain subsidiaries of Adelphia Cablevision, LLC. The RME Debtors filed for chapter 11 protection on March 31, 2006 (Bankr. S.D.N.Y. Case Nos. 06-10622 through 06-10642). Their cases are jointly administered under Adelphia Communications and its debtor-affiliates chapter 11 cases. (Adelphia Bankruptcy News, Issue No. 162; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). As reported in the Troubled Company Reporter on Jan. 9, 2007, the Honorable Robert E. Gerber of the U.S. Bankruptcy Court for the Southern District of New York has entered an order confirming the first modified fifth amended joint Chapter 11 plan of reorganization of Adelphia Communications Corporation and Certain Affiliated Debtors. AMERICAN CABINETRY: Case Summary & 26 Largest Unsecured Creditors ----------------------------------------------------------------- Lead Debtor: American Cabinetry, Inc. 26 Brickyard Road Cranbury, NJ 08512 Bankruptcy Case No.: 07-11019 Debtor affiliates filing separate chapter 11 petitions: Entity Case No. ------ -------- Cranbury Company, Inc. 07-11016 Cranbury Equipment Co, Inc. 07-11018 Type of Business: The Debtor manufactures wood nonrefrigerated show & display cabinets. The Debtors previously filed for chapter 11 protection on May 16, 2001 (Bankr. D. N.J. Case Nos. 01-56027, 01-56030, and 01-56032). Chapter 11 Petition Date: January 24, 2007 Court: District of New Jersey (Trenton) Judge: Raymond T. Lyons Jr. Debtors' Counsel: Stephen E. Milazzo, Esq. The Law Offices of Stephen E. Milazzo, Esq. 44 Old Clove Road Sussex, NJ 07461 Tel: (201) 970-9607 Estimated Assets Estimated Debts ---------------- --------------- American Cabinetry, Inc. $1 Million to $1 Million to $100 Million $100 Million Cranbury Company, Inc. $1 Million to $1 Million to $100 Million $100 Million Cranbury Equipment Co, Inc. $1 Million to $1 Million to $100 Million $100 Million A. American Cabinetry, Inc.'s 26 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Rex Lumber Company Trade debt $397,518 P.O. Box 1776 Englishtown, NJ 07726 PSE&G Trade debt $55,069 NEW 6253109550 P.O. Box 14106 New Brunswick, NJ 08906-4106 JCP&L Trade debt $19,810 P.O. Box 3687 Akron, OH 44309-3687 T.J. Wiggins Trade debt $10,669 Cifelli Disposal Inc. Trade debt $10,653 Roberts Plywood Co. Trade debt $10,200 American Door 7 Window, LLC Trade debt $7,707 Millhurst Trading Co. Inc. Trade debt $6,082 Joule Trade debt $5,870 Princeton-Somerset Group, Trade debt $5,570 Inc. Bay Ridge Lumber Laminators Trade debt $5,405 Supply Top Tech Trade debt $5,200 Precision Saw & Tool Corp. Trade debt $4,730 Industrial Abrasives Co. Trade debt $4,564 Bellstone Trade debt $4,243 Sand Stone Trade debt $3,942 Arizona Premium Finance Trade debt $3,929 Eurovinyl Pluss US LLC Trade debt $3,900 Wiener, Crowley & St. John Trade debt $3,774 Inc. Capitoline Products Trade debt $3,708 Keyston Abrasives Co. Trade debt $3,464 Atlantic Tool Systems, Inc. Trade debt $3,414 NJ Dept. of Environmental Statutory $2,000 Protection violation Verizon Trade debt $1,273 Cooperative Communications Trade debt $633 Inc. Ford Motor Credit Unknown B. Cranbury Company, Inc., and Cranbury Equipment Co, Inc., does not have any unsecured creditors who are not insiders. ARK #1: Case Summary & 20 Largest Unsecured Creditors ----------------------------------------------------- Debtor: Ark #1, LLC 5440 Morehouse Drive, #4000 San Diego, CA 92121 Bankruptcy Case No.: 07-50058 Chapter 11 Petition Date: January 23, 2007 Court: District of Nevada (Reno) Judge: Gregg W. Zive Debtor's Counsel: David B. Golubchik, Esq. David L. Neale, Esq. Ovsanna Takvoryan, Esq. Levene, Neale, Bender, Rankin & Brill 10250 Constellation Boulevard, Suite 1700 Los Angeles, CA 90067 Tel: (310) 229-1234 --- and --- Edmond Buddy Miller, Esq. 6490 South McCarran Boulevard, Building C Suite 26 Reno, NV 89509 Tel: (775) 828 9898 Estimated Assets: $1 Million to $100 Million Estimated Debts: $1 Million to $100 Million Debtor's 20 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Counsel of Co-owners Co-owner dues $2,201,472 Lakeshore Resort & Yacht Club c/o Stephen B. Niswanger, Esq. #5 Innwood Circle, Suite 110 Little Rock, AR 72211 Frederick L. Ludden & Class action $31,625 Patricia A. Ludden plaintiff c/o Jay Bequette, Esq. Bequette & Billingsley, P.A. 425 West Capitol Ave., #3200 Little Rock, AR 72201-3556 Jacob J. Schreuder & Class action $30,895 Cornelia A. Schreuder plaintiff c/o Jay Bequette, Esq. Bequette & Billingsley, P.A. 425 West Capitol Ave., #3200 Little Rock, AR 72201-3590 Stanley M. Compton & Class action $30,171 Carla G. Compton plaintiff c/o Jay Bequette, Esq. Bequette & Billingsley, P.A. 425 West Capitol Ave., #3200 Little Rock, AR 72201-3493 Friedman, Gerald L. & A.C. Class action $28,859 plaintiff Michael W. Barker & Class action $28,799 Sharon K. Barker plaintiff Kennith Buchanan & Class action $28,846 Mary Alice Buchanan plaintiff Larry Wallace & Class action $28,019 Maria Wallace plaintiff Jon Tappan Class action $27,968 plaintiff Booby Joe Wade & Class action $27,931 Mary Jo Wade plaintiff Daniel W. Hawkins, Jr. & Class action $27,874 Glenda W. Hawkins plaintiff Walter R. Oglesby, M.D. & Class action $27,544 Kelley Kyte Oglesby plaintiff Robert J. Pennington & Class action $26,405 Virginia M. Pennington plaintiff Robert A. Bahr & Class action $26,348 Deborah A. Bahr plaintiff W. John Gammage & Class action $26,345 Jan V. Gammage plaintiff B.R. (Pete) Kennemer & Class action $26,286 Mary E. Kennemer plaintiff Gary L. Howe & Class action $26,252 Sylvia B. Howe plaintiff John M. Gathings & Class action $25,825 Wanda G. Gathings plaintiff Eddie J. Nicholson Jr. & Class action $25,750 Sharon H. Nicholson plaintiff James C. Henry & Class action $25,486 Catherine W. Henry plaintiff ASSOCIATES GROUP: Case Summary & Four Largest Unsecured Creditors ----------------------------------------------------------------- Debtor: The Associates Group Pioneer Pines Park 110 East Avenida Palizada, Suite 201A San Clemente, CA 92672 Bankruptcy Case No.: 07-10154 Type of Business: The Debtor is a public benefit non-profit corporation. Chapter 11 Petition Date: January 18, 2007 Court: Central District Of California (Santa Ana) Judge: Erithe A. Smith Debtor's Counsel: James C. Bastian, Jr., Esq. Richard A. Marshack, Esq. Shulman Hodges & Bastian LLP 26632 Towne Centre Drive, #300 Foothill Ranch, CA 92610-2808 Tel: (949) 340-3400 Fax: (949) 340-3000 Total Assets: $8,831,842 Total Debts: $8,879,256 Debtor's Four Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Elynor R. Falk Marital Trust C Bond Holder $1,517,667 David Falk Trustee Accrued Interest 2150 Sunshine Circle North (12/26/2002 at Palm Springs, CA 92264 5.5%) US Bank NA Corporate Trust 2005 Trustee Fees $2,500 Services Attn: President or CFO 633 West Fifth Street 24th Floor Los Angeles, CA 90071 Dewey Pest Control Trade Creditor $83 Attn: President or CFO Account No. 763784 P.O. Box 7114 and 759022 Pasadena, CA 91109-7214 First Advantage Trade Creditor $37 Attn: President or CFO Account No. 70305 BALDOR ELECTRIC: Moody's Holds B3 Rating on $550 Million Sr. Notes ------------------------------------------------------------------ Moody's Investors Service has affirmed the B1 corporate family rating of Baldor Electric Company along with the Ba3 ratings for the proposed senior secured credit facilities and B3 ratings for the proposed $550 million senior unsecured notes following the company's disclosure that the company intends to eliminate a preferred stock issuance from its previously reported financing plans. The rating outlook is stable. These first-time ratings are subject to final documentation. Proceeds from the proposed debt offerings, together with proceeds from the issuances of common stock will be used to fund the $1.8 billion acquisition of the Power System businesses of Rockwell Automation, Inc., refinance existing debt and pay transaction fees. Initial financing plans included the use of $150 million preferred stock, which the rating agency treated as 100% equity. The revised plans eliminate the preferred stock offering and increase the term loan to $1.050 billion from $1 billion, use $25 million of borrowings under the revolving credit facility instead of remaining undrawn at close and the use of an additional $75 million of equity to fund the acquisition of the power system businesses. Depending on market conditions, the equity offering could be increased as much as $75 million. Any additional net proceeds would be first applied to borrowings under the revolver, then the term loan. The transaction is expected to be completed in the first quarter of 2007. Ratings affirmed with a stable outlook: -- B1 corporate family rating -- B1 probability of default rating, LGD4, 50% loss given default assessment -- Ba3, LGD3, 35% for the $1.05 billion senior secured term loan maturing in 2014 -- Ba3, LGD3, 35% for the $200 million senior secured revolving credit facility maturing in 2012 -- B3, LGD5, 87% for the $550 million senior unsecured notes -- SGL-1 speculative grade liquidity rating Ratings withdrawn as a result of this action: -- B3, LGD6, 98% for the $150 million mandatorily convertible preferred stock The initial B1 corporate family rating reflects the high levels of debt required to consummate the acquisition of the Power Systems businesses, modest free cash flow expected in 2007 and significant reliance on and susceptibility to downturns in the North American industrial sector. The ratings acknowledge Baldor's enhanced competitive position, particularly in the North American industrial electric motors market, strong brand recognition, reputation for quality products and strong operating margins. Further, the rating agency believes the Power System businesses fit nicely with the existing Baldor business resulting in a company capable of providing end to end solutions through the power conversion cycle. Despite the relative size of the transaction, Moody's believes integration risk will be low and that cost synergies will be modest in the next two years. Upward rating momentum will be dependent on the company's ability to generate strong cash flows and reduce the acquisition related debt. The stable outlook reflects Moody's view that the combined company will grow organically throughout the assimilation process over the 12 to 18 month period following the acquisition and that modest free cash flow generation will be used to de-leverage. The outlook incorporates an expectation that the global motor market will continue to expand and that the company will expand internationally as a result. The previous rating action for Baldor was the Jan. 9, 2007 assignment of its B1 corporate family ratings, Ba3 senior secured rating, B3 senior unsecured rating and the B3 preferred stock rating. Baldor Electric Company is a leading manufacturer of industrial electric motors, drives and generators. Baldor is headquartered in Fort Smith, Arkansas. Power Systems is a leading provider of Dodge power transmission products, including mounted bearings and enclosed gearing, and Reliance Electric industrial motors, including large AC and custom, variable speed and specialty, and small and medium AC motors. After this transaction, the motor business will represent 64% of sales, Dodge 28%, motion control and drives 7% and generators 2%. Pro forma revenue for 2006 will likely exceed $1.8 billion. BASIC ENERGY: Moody's Rates Amended & Upsized Facility at Ba1 ------------------------------------------------------------- Moody's assigned a Ba1 and LGD2, 19% rating to Basic Energy Services, Inc.'s amended and upsized secured revolving credit facility. Moody's also affirmed Basic's Ba3 corporate family rating and the Ba3 probability of default rating. The outlook is stable. Based on the LGD notching methodology and the increased size of the senior secured revolver in the pro forma capital structure, the senior note ratings remain B1 but the LGD assessment is changing from LGD4, 67% to LGD5, 74%. Moody's will withdraw the Baa3 rating rating on the existing secured credit facility upon closing of the new facility. The upsized revolver is rated Ba1 under the LGD methodology given the increased size and relative proportion of the capital structure and the expectation that Basic will utilize a portion of the facility. The first lien revolving credit facility is being upsized from $150 million to $225 million to help fund BAS' acquisition strategy but also to provide continued financial flexibility as the company pursues additional acquisition opportunities. BAS recently it has agreed to acquire JetStar for an estimated $120 million which will add approximately 35,000 horsepower of pressure pumping in Texas, Oklahoma, and Kansas, and follows BAS' strategy of gaining scale and diversification through acquisitions. It will be financed through a $43.5 million common stock issuance with the remaining proceeds coming from borrowings under the expanded revolver which is more of a debt mix than Moody's had anticipated. However, Moody's notes that the JetStar acquisition will be BAS's largest acquisition to date and Moody's will be closely monitoring how BAS will fund future acquisitions and whether it maintains its overall moderate credit profile, especially as there are signs that the oilfield services could see some softer market conditions ahead. Pro-forma for JetStar, BAS is expected to have approximately $77 million outstanding under its revolving credit facility. It does not appear that the company has any near-term debt reduction plans, and it seems that BAS intends to maintain a larger debt balance in the future. Nevertheless, debt to EBITDA, at 1.5x, is well within acceptable ranges for the current ratings. The Ba3 corporate family rating reflects Basic's improved scale and diversification of both its products and services as well as improved regional diversification through several acquisitions over the past three years, which combined with the strong market conditions has resulted in EBITDA tripling during that time. The ratings are also supported by more than 50% of the company's operating earnings coming from more durable and less price sensitive well-services segment which focuses on existing oil and gas production. Moreover, financial metrics including debt/EBITDA and EBIT/Interest are extremely robust as a result of the cyclical peak and currently compare favorably to its Ba3 rated oilfield services peer group. The Ba3 ratings also reflect the inherent volatility and cyclicality of the oilfield services business. Moody's expects that cash flows from BAS' drilling related business would be pressured if drilling activity declines due to lower price environment and result in significantly lower earnings and cashflows. In addition, the Ba3 reflects the company's still relatively small scale compared to the largest competitors, the company's concentration on the mature US market, and the integration and event risk given the company's still active roll-up strategy. The stable outlook reflects Moody's expectation for the company's financial metrics to remain in line with parameters for the Ba3 rating. More specifically, the outlook assumes that management will keep upcycle leverage from trending towards the 2.5x range considering the company's still comparatively smaller scale, Moody's current outlook for the sector, and the continued aggressive growth strategy. The outlook also assumes that management has not altered its acquisition funding strategy and that any additional large acquisitions will be financed with a more balanced mix of debt and equity than the JetStar acquisition. Positive ratings momentum would depend on the company increasing its size and diversification through a significant large acquisition that is largely equity funded and is viewed to enhance the company's scale and geographic diversification, especially if it tied more to the production side of services versus drilling. The outlook or ratings could be pressured if management alters its conservative financial policies and financial metrics significantly deteriorate including debt/EBITDA trending close to 2.5x in the upcycle or if the company executes large debt financed acquisitions or a debt financed dividend or stock buyback program. Basic Energy Services is headquartered in Midland, Texas. BDO SEIDMAN: Gets Sued by Banco Espirito for $170 Million --------------------------------------------------------- Banco Espirito Santo International has filed a $170 million civil lawsuit against BDO Seidman LLP in Miami-Dade Circuit Court for negligence and dishonesty, reports said. Banco Espirito alleges that BDO Seidman failed to detect fraud in the defunct E.S. Bankest LLC that ultimately led to Bankest's collapse. BDO Seidman has maintained that it was not negligent in its audits of E.S. Bankest and has counter sued Banco Espirito. Bankest was created in 1998 by the partnership of Banco Espirito and Bankest Capital Corp. as a factoring firm that buys at a discount accounts receivable of other companies. Banco Espirito said that it entered into partnership with Bankest Capital because BDO Seidman's audits from 1995 to 1996 showed high income, Steven Thomas, Esq., representing Banco Espirito told jurors this month in an opening statement, Curt Anderson of the Associated Press reported. Mr. Thomas added that BDO Seidman missed a red flag when it mailed 145 letters in one year to companies listed as owners of Bankest money, and it received no replies, Mr. Anderson further said. According to reports, Bankest management and Banco Espirito executives were the ones who provided false financial documents and fictitious invoices to accountants of BDO Seidman, Adam Cole, Esq., representing BDO Seidman countered. Mr. Cole told jurors that Banco Espirito was having financial problems in the 90s that led them to the Bankest partnership expecting an increase in income, Mr. Anderson added. Banco Espirito's lawsuit compared BDO Seidman's role in Bankest as that of defunct accounting firm Arthur Anderson's role in Enron's case. The Honorable Jose Rodriguez, however, prohibited any mention of Enron in the trial proper calling it prejudicial, Patrick Danner of Miami Herald reported. BDO Seidman said that a verdict against it could threaten its standing as the world's fifth-largest accounting firm and could mean loss of jobs to thousands of its accountants, auditors, and staff, Mr. Danner added. About Banco Espirito Santo Banco Espirito Santo was founded in Portugal in 1920. It expanded its operations to Brazil. About BDO Seidman LLP BDO Seidman LLP is a national professional services firm providing assurance, tax, financial advisory and consulting services to a wide range of publicly traded and privately held companies. Guided by core values of integrity, trust, professionalism, independence and service for almost 100 years, the firm has provided quality service and leadership through the active involvement of our most experienced and committed professionals. BDO Seidman serves clients through 34 offices and more than 300 independent alliance firm locations nationwide. As a Member Firm of BDO International, BDO Seidman LLP serves multi-national clients by leveraging a global network of resources comprised of 601 Member Firm offices in 105 countries. BDO International is a worldwide network of public accounting firms, called BDO Member Firms, serving international clients. Each BDO Member Firm is an independent legal entity in its own country. BOCA CIEGA: Voluntary Chapter 11 Case Summary --------------------------------------------- Debtor: Boca Ciega Corporation P.O. Box 86128 Madeira Beach, FL 33738 Bankruptcy Case No.: 07-00524 Type of Business: Chapter 11 Petition Date: January 23, 2007 Court: Middle District of Florida (Tampa) Judge: Catherine Peek McEwen Debtor's Counsel: Michael C Markham, Esq. Johnson Pope Bokor Ruppel & Burns LLP P.O. Box 1368 Clearwater, FL 33757 Tel: (727) 461-1818 Fax: (727) 443-6548 Estimated Assets: $1 Million to $10 Million Estimated Debts: $1 Million to $10 Million The Debtor did not file a list of its 20 Largest Unsecured Creditors. BURLINGTON COAT: Poor Performance Prompts S&P's Negative Outlook ---------------------------------------------------------------- Standard & Poor's Ratings Services changed the ratings outlook on Burlington Coat Factory to negative from stable. At the same time, Standard & Poor's affirmed the company's ratings, including the 'B' corporate credit rating and the bank loan ratings. "We believe Burlington Coat Factory's recent poor same-store sales performance will result in lower-than-expected margins, and credit measures that will not meet expectations," said Standard & Poor's credit analyst David Kuntz. Ratings for the Burlington, NJ-based Burlington Coat Factory reflect the company's participation in the highly competitive and economically vulnerable off-price apparel and home goods industry, substantial seasonality and exposure to macroeconomic trends, high leverage, and thin cash flow protection measures. Although BCF has a good history of operating results, sales have recently weakened due to warm weather. The late arrival of cold weather may continue to be a negative factor in the company's third quarter 2007. "With little time available before spring merchandise arrives, it will be difficult for BCF to make up the ground it lost over the past few months," added Mr. Kuntz. CALPINE CORP: Harbinger Submits $100 Million Alternative Offer -------------------------------------------------------------- Harbinger Capital Partners has submitted an offer to Ernst & Young Inc., in its capacity as the court-appointed monitor in the Canadian insolvency proceedings, for all of the Class B subordinated units of Calpine Power, L.P. and various management agreements among affiliates of each of Calpine Corporation and Calpine Power Income Fund. The offer, which is subject only to the receipt of all regulatory approvals and an order of the Court in acceptable form and definitive documentation, provides for HCP Acquisition Inc. to acquire all of the Class B Units (including all rights and entitlements accruing to the Class B Units in relation to claims by CLP) and the Management Agreements for an aggregate purchase price equal to the greater of: (a) $100 million; and (b) the Fund's proposed price plus $2 million. The offer is not conditional on HCP Acquisition's take-over bid for all the outstanding units of the Fund being successful. However, if the bid is successful and HCP acquires all of the units of the Fund, it will pay CCPL an additional $20 million and will enter into or otherwise affirm the Settlement Agreement proposed by the Fund, provided that HCP Acquisition is satisfied with its terms, acting reasonably. In this manner, to the extent the bid is successful, the Monitor will have materially increased the consideration received for these assets. Unlike the Fund's settlement agreement, Harbinger's offer in no way precludes the Monitor from soliciting or otherwise initiating or encouraging alternative offers or proposals that might bring greater value to CCPL in the insolvency proceedings. "We and various other creditors involved in the Calpine CCAA proceedings were discouraged that the Monitor would have entered into the settlement agreement without tendering these assets for auction," stated Howard Kagan, a managing director of Harbinger Capital Partners. "The Monitor knew or ought to have reasonably known that these assets were of interest to Harbinger and other parties." "The Fund's very recent and expedited efforts to acquire the Class B Units and settle matters with its manager appear to have been taken in response to our take-over bid," continued Mr. Kagan. "However, the Trustees' efforts to keep all details of their proposed deal confidential until after approved by the Court makes one question the motives of the Trustees. It is difficult to know whether this deal, once the details are made public to unitholders, would be such as to cause Harbinger to amend or withdraw its offer for the Trust." Harbinger's offer in relation to the Class B Units and Management Agreements is open for acceptance until 4:00 p.m. (Calgary time) on Feb. 16, 2007, unless accepted by the Monitor or extended or terminated in writing by Harbinger. About Calpine Power Income Fund Calpine Power Income Fund (Toronto Stock Exchange: CF.UN) -- http://www.calpinepif.com/-- is an unincorporated open-ended trust that invests in electrical power assets. The Fund indirectly owns interests in power generating facilities in British Columbia, Alberta and California. In addition, the Fund owns a participating loan interest in a power plant in Ontario and has made a loan to Calpine Canada Power Ltd. The Fund is managed by Calpine Canada Power Ltd., which is headquartered in Calgary, Alberta. The Fund has 61,742,288 Trust Units outstanding. About Calpine Corp. Headquartered in San Jose, California, Calpine Corporation (OTC Pink Sheets: CPNLQ) -- http://www.calpine.com/-- supplies customers and communities with electricity from clean, efficient, natural gas-fired and geothermal power plants. Calpine owns, leases and operates integrated systems of plants in 21 U.S. states and in three Canadian provinces. Its customized products and services include wholesale and retail electricity, gas turbine components and services, energy management and a wide range of power plant engineering, construction and maintenance and operational services. The company previously produced a portion of its fuel consumption requirements from its own natural gas reserves. However, in July 2005, the company sold substantially all of its remaining domestic oil and gas assets to Rosetta Resources Inc. The company filed for chapter 11 protection on Dec. 20, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-60200). Richard M. Cieri, Esq., Matthew A. Cantor, Esq., Edward Sassower, Esq., and Robert G. Burns, Esq., Kirkland & Ellis LLP represent the Debtors in their restructuring efforts. Michael S. Stamer, Esq., at Akin Gump Strauss Hauer & Feld LLP, represents the Official Committee of Unsecured Creditors. As of Dec. 19, 2005, the Debtors listed $26,628,755,663 in total assets and $22,535,577,121 in total liabilities. CANAL CAPITAL: Todman & Company Raises Going Concern Doubt ---------------------------------------------------------- Todman & Co., in New York, expressed substantial doubt about Canal Capital Corp.'s ability to continue as a going concern after auditing the company's consolidated financial statements for the years ended Oct. 31, 2006, and 2005. The auditing firm cited that the company has suffered recurring losses from operations and is obligated to continue making substantial annual contributions to its defined benefit pension plan. Canal Capital reported a $322,424 net loss on $4.4 million of real estate revenues for the year ended Oct. 31, 2006, compared with $716,166 of net income on $6.5 million of real estate revenues for the year ended Oct. 31, 2005. The company's net loss of $322,424 is due primarily to the $1.1 million decrease in the gain on sale of real estate, while the company's fiscal 2005 net income was due primarily to a $2.5 million increase in sales of real estate which generated operating income of $1.3 million. Revenues in 2006 decreased by $2.1 million to $4.4 million as compared with 2005 revenues. The fiscal 2006 decrease in revenues is due primarily to the $2.2 million decrease in sales of real estate offset to a certain extent by the $200,000 increase in revenues from stockyard operations. At Oct. 31, 2006, the company's balance sheet showed $5.4 million in total assets, $3.7 million in total liabilities, and $1.7 million in total stockholders' equity. Full-text copies of the company's consolidated financial statements for the year ended Oct. 31, 2006, are available for free at http://researcharchives.com/t/s?190c About Canal Capital Headquartered in Hauppauge, New York, Canal Capital Corporation (OTC: COWP) is engaged in two distinct businesses -- stockyard and real estate operations. Canal's real estate properties are located in Sioux City, Iowa, South St Paul, Minnesota, St Joseph, Missouri, Omaha, Nebraska and Sioux Falls, South Dakota. The properties consist, for the most part, of a commercial office space, land and structures leased to third parties as well as vacant land available for development or resale. Canal also operates two central public stockyards located in St. Joseph, Missouri and Sioux Falls, South Dakota. CAPITAL AUTO: Fitch Upgrades Rating on Series 2006-1 Class D Notes ------------------------------------------------------------------ Fitch Ratings upgrades the outstanding classes B, C and D notes and affirms the class A notes of the Capital Auto Receivables Asset Trust 2006-1 asset-backed notes transaction: -- 2006-1 class A affirmed at 'AAA'; -- 2006-1 class B upgraded to 'AA' from 'A'; -- 2006-1 class C upgraded to 'A' from 'BBB'; and, -- 2006-1 class D upgraded to 'BBB' from 'BB'. The rating upgrade is a result of increased available credit enhancement. The collateral continues to perform within Fitch's expectations and, under the credit enhancement structure, the securities can now withstand stress scenarios consistent with the upgraded ratings and still make full payments to investors in accordance with the terms of the documents. As before, the ratings reflect the quality of General Motors Acceptance Corporation's retail auto loan originations, the strength of its servicing capabilities, and the sound financial and legal structure of the transaction, and the strength of the servicing provided by General Motors Acceptance Corporation. CEP HOLDING: Has Until April 18 to Make Lease Related Decisions --------------------------------------------------------------- The Hon. Marilyn Shea-Stonun of the U.S. Bankruptcy Court for the Northern District of Ohio extended, until April 18, 2007, the period within which CEP Holdings LLC and its debtor-affiliates can elect to assume or reject unexpired non-residential real property leases. The Debtor's explain to the Court that the unexpired leases remain in effect and have not expired according their respective terms. The Debtors point out that these unexpired leases are subject to assumption or rejection under Section 365 of the Bankruptcy Code. About CEP Holdings Based in Akron, Ohio, CEP Holdings, LLC, manufactured hard, molded rubber products and extruded plastic materials for companies in the automotive, construction, and the medical industries. The Company and two of its subsidiaries filed for chapter 11 protection on Sept. 20, 2006 (Bankr. N.D. Ohio Case No. 06-61796). McGuireWoods LLP represents the Official Committee of Unsecured Creditors. When the Debtors filed for protection from their creditors, they estimated assets and debts between $10 million and $50 million. CHARTWELL SENIORS: Board Restructures Senior Management Team ------------------------------------------------------------ The Board of Trustees of Chartwell Seniors Housing Real Estate Investment Trust has re-defined specific roles for its senior management team to reflect the evolution of Chartwell's business, its significant growth, and the considerable opportunities being evaluated for future expansion. Effective immediately, Mr. Stephen Suske has been appointed Vice Chair and Co-Chief Executive Officer, and Mr. Robert Ezer has been appointed President and Co-Chief Executive Officer. Both executives will be responsible for the strategic direction of the REIT reporting directly to the Board of Trustees. In addition, Mr. Suske will be responsible for all on-going operations of the REIT, while Mr. Ezer will oversee all investment activities and the continued growth of the REIT. In addition, Mr. Cam Crawford has been appointed Chief Operating Officer responsible for the management of EBITDA and general and administrative expenses and will oversee all North American retirement communities, including operations, acquisitions, internal growth and mezzanine loan activities for the company and Mr. Richard Noonan has been appointed Chief Operating Officer, Canadian Retirement Communities. "The restructuring of our senior management team more clearly defines specific responsibilities to ensure that our growth is reflected in enhanced value for our Unitholders," Mr. Suske stated. "The North American seniors housing business remains highly fragmented, and with these changes we are confident our track record of accretive growth will continue," Mr. Ezer added. About Chartwell Seniors Chartwell Seniors Housing Real Estate Investment Trust (TSX:CSH.UN) -- http://www.chartwellreit.ca/-- is a growth- oriented investment trust owning and managing a complete spectrum of seniors communities. It is currently the largest participant in the Canadian seniors housing business with a growing presence in the United States. The company capitalizes on the strong demographic trends present in its markets to grow internally and through accretive acquisitions. The company also has an exclusive option to purchase stabilized communities from Spectrum Seniors Housing Development L.P., a growing seniors housing development company. Chartwell's Distribution Reinvestment Plan (DRIP) allows Unitholders to have their monthly cash distributions used to purchase Trust Units without incurring commission or brokerage fees, and receive bonus Units equal to 3% of their monthly cash distributions. * * * As reported in the Troubled Company Reporter on Oct. 26, 2006, Dominion Bond Rating Service confirmed the ratings of Chartwell Seniors Housing REIT at BB and STA-4 (high), following Chartwell's announcements of acquisition and investment activity totaling $850 million, or approximately $715 million reflecting Chartwell's share. CHASEFLEX TRUST: Fitch Puts Low-B Ratings on $4.27 Million Certs. ----------------------------------------------------------------- ChaseFlex Trust, series 2007-1, is rated by Fitch: -- $424,138,296 classes 1-A1 through 1-A3, 2-A1 through 2-A13, A-X, A-P, and A-R 'AAA'; -- $11,700,300 class M 'AA'; -- $4,725,200 class B-1 'A'; -- $3,600,100 class B-2 'BBB'; -- $2,250,000 privately offered B-3 'BB'; and, -- $2,025,100 privately offered B-4 'B'. The 'AAA' rating on the senior classes reflects the 5.75% subordination provided by the 2.60% class M, 1.05% class B-1, 0.80% class B-2, 0.50% privately offered class B-3, 0.45% privately offered class B-4 and 0.35% privately offered and not rated class B-5 certificates. Fitch believes the above credit enhancement will be adequate to support mortgagor defaults as well as bankruptcy, fraud and special hazard losses in limited amounts. In addition, the ratings also reflect the quality of the underlying mortgage collateral, strength of the legal and financial structures, and the primary servicing capabilities of JPMorgan Chase Bank, N.A. This transaction contains certain classes designated as exchangeable certificates and others as regular certificates. Class 2-A13 is an exchangeable certificate. Classes 1-A1 through 1-A3, 2-A1 through 2-A12, A-X, A-P, A-R, M and B-1 through B-5 are regular certificates. The holder of the Exchangeable Initial Certificates in any Exchangeable Combination may exchange all or part of each class of such Exchangeable Initial Certificates for a proportionate interest in the related Exchangeable Certificates. The holder of any class of Exchangeable Certificates may exchange all or part of such class for a proportionate interest in each such class of Exchangeable Initial Certificates or for other Exchangeable Certificates in the related Exchangeable Combination. The classes of Exchangeable Initial Certificates and Exchangeable Certificates that are outstanding on any date and the outstanding principal balances of any such classes will depend upon the aggregate distributions of principal made to such classes, as well as any exchanges that may have occurred on or prior to such date. For the purposes of the exchanges and the calculation of the principal balance of any class of Exchangeable Initial Certificates, to the extent that exchanges of Exchangeable Initial Certificates for Exchangeable Certificates occur, the aggregate principal balance of the Exchangeable Initial Certificates will be deemed to include the principal balance of such Exchangeable Certificates issued in the exchange, and the principal balance of such Exchangeable Certificates will be deemed to be zero. Exchangeable Initial Certificates in any Exchangeable Combination and the related Exchangeable Certificates may be exchanged only in the specified proportion that the original principal balances of such certificates bear to one another. Any holders of Exchangeable Certificates will be the beneficial owners of an interest in the Exchangeable Initial Certificates in the related Exchangeable Combination and will receive a proportionate share, in the aggregate, of the aggregate distributions on those certificates. With respect to any Distribution Date, the aggregate amount of principal and interest distributable to any classes of Exchangeable Certificates and the Exchangeable Initial Certificates in the related Exchangeable Combination then outstanding on such Distribution Date will be equal to the aggregate amount of principal and interest otherwise distributable to all of the Exchangeable Initial Certificates in the related Exchangeable Combination on such Distribution Date as if no Exchangeable Certificates were then outstanding. The trust consists of 1,159 first-lien residential mortgage loans with stated maturity of not more than 30 years with an aggregate principal balance of $450,014,110 as of the cut-off date, Jan. 1, 2007. The mortgage pool has a weighted average original loan-to-value ratio of 70.10% with a weighted average mortgage rate of 7.078%. The weighted-average FICO score of the loans is 710. The average loan balance is $388,278 and the loans are primarily concentrated in California, Florida, and New York. None of the mortgage loans are 'high cost' loans as defined under any local, state or federal laws. The Bank of New York Trust Company, N.A will serve as trustee. Chase Mortgage Finance Corporation, a special purpose corporation, deposited the loans in the trust which issued the certificates. For federal income tax purposes, an election will be made to treat the trust fund as one or more real estate mortgage investment conduits. COOPER COS: Discloses Proposed $1 Billion Refinancing ----------------------------------------------------- The Cooper Companies Inc. disclosed a proposed refinancing which includes a $650 million revolving credit facility and a private offering of $350 million aggregate principal amount of senior notes due 2015. The company intends to use borrowings under the new revolving credit facility and the net proceeds of the notes offering to repay in full its $250 million term loan and all outstanding borrowings under its existing $750 million syndicated bank credit facility, which will be terminated. The new revolving credit facility will be unsecured and will include customary guarantees from domestic subsidiaries and negative pledges on assets. The exact terms and timing of the new financing will depend on market conditions and other factors. The company's proposed new financing is designed to lock in long- term capital with attractive pricing; provide enhanced strategic and operational flexibility with fewer and less restrictive covenants; generate greater borrowing capacity with lower pricing and lower fees and eliminate existing debt amortization. "This new financing is intended to serve our financing needs for the foreseeable future" Commenting on the proposed transactions, Steven M. Neil, Cooper's Chief Financial Officer said. "We are pleased to be working with a bank syndicate that recognizes our improving financial position, our favorable operational outlook and the significant progress we have made integrating Ocular Sciences into CooperVision." About Cooper Companies The Cooper Companies, Inc. (NYSE:COO) -- http://www.coopercos.com/-- manufactures and markets specialty healthcare products through its CooperVision and CooperSurgical units. Corporate offices are in Lake Forest and Pleasanton, Calif. CooperVision -- http://www.coopervision.com/-- manufactures and markets contact lenses and ophthalmic surgery products. Headquartered in Lake Forest, Calif., it manufactures in Albuquerque, N.M., Juana Diaz, Puerto Rico, Norfolk, Va., Rochester, N.Y., Adelaide, Australia, Hamble and Hampshire England, Ligny-en-Barrios, France, Madrid, Spain and Toronto. CooperSurgical -- http://www.coopersurgical.com/-- manufactures and markets diagnostic products, surgical instruments and accessories to the women's healthcare market. With headquarters and manufacturing facilities in Trumbull, Conn., it also manufactures in Pasadena, Calif., North Normandy, Ill., Fort Atkinson, Wis., Montreal and Berlin. Proclear(R) and Biomedics(R) are registered trademarks and Biomedics XC(TM) and Biofinity(TM) are trademarks of The Cooper Companies, Inc., and its subsidiaries or affiliates. * * * As reported in Troubled Company Reporter on Jan. 24, 2007, Standard & Poor's Ratings Services lowered its corporate credit rating on Lake Forest, California-based Cooper Companies Inc. to 'BB-' from 'BB'. COPELANDS' ENTERPRISES: Selects Glenn Burdette as Accountants ------------------------------------------------------------- Copelands' Enterprises Inc. seeks authority from the Hon. Mary F. Walrath of the U.S. Bankruptcy Court for the District of Delaware to employ Glenn, Burdette, Phillips and Bryson as tax and audit accountants, nunc pro tunc to Aug. 14, 2006. The Debtor expects Glenn Burdette to: a) prepare tax returns for the fiscal year ended Jan. 31, 2007; b) assist in the Internal Revenue Service audit; and c) assist in the 401(k) and health plan auditing. The Debtor has agreed to compensate the firm's professionals at these hourly rates: Professional Position Hourly Rate ------------ -------- ----------- R. Lance Cowart, CPA Director $230 Janet C. Jensen, CPA Manager - Taxation $180 Mical W. Bovee Staff Accountant $110 Kathy Burkhart Admin Asst II $55 Heather R. Pope Admin. Asst $70 Celeste A. Gray Supervising Sr. Accountant $150 Jennie L. Hackett Admin. Asst $70 Suzanne Atkinson Manager - Client Accounting Services $125 To the best of the Debtor's knowledge, the firm does not hold any interest adverse to the Debtor and is a "disintersted person" as that term is defined in Sec. 101(14) of the Bankruptcy Code. The Court will convene a hearing at 2:00 p.m. on Feb. 5, 2007, to consider the Debtor's request. Objections to the motion are due on Jan. 29, 2007. Based in San Luis Obispo, California, Copelands' Enterprises Inc. dba Copelands' Sports -- http://www.copelandsports.com/-- operates specialty sporting goods stores. The company filed for chapter 11 protection on Aug. 14, 2006 (Bankr. D. Del. Case No. 06-10853). James E. O'Neill, Esq., and Laura Davis Jones, Esq., at Pachulski, Stang, Ziehl, Young, Jones, & Weintraub LLP, in Los Angeles, California, represent the Debtor. Adam G. Landis, Esq., at Landis Rath & Cobb LLP represents the Official Committee of Unsecured Creditors. Clear Thinking Group serves as the Debtor's financial advisor. When the Debtor filed for protection from its creditors, it estimated assets and debts between $50 million and $100 million. CORPORATE CONNECTION: Case Summary & 20 Largest Unsec. Creditors ---------------------------------------------------------------- Debtor: Corporate Connection Lines, Inc. aka Sovereign Coach & Tours 4160 Ravenswood Road Dania, FL 33312 Bankruptcy Case No.: 07-10344 Type of Business: The Debtor provides luxury transportation for individuals and businesses locally in South Florida and nationwide in the U.S.A. and Canada. See http://corporateconnectionlines.com/ Chapter 11 Petition Date: January 19, 2007 Court: Southern District of Florida (Fort Lauderdale) Judge: John K. Olson Debtor's Counsel: Brian S Behar, Esq. Behar, Gutt & Glazer, P.A. 2999 Northeast 191 Street, 5th Floor Aventura, FL 33180 Tel: (305) 931-3771 Estimated Assets: Not Stated Estimated Debts: $1 Million to $100 Million Debtor's 20 Largest Unsecured Creditors: Entity Claim Amount ------ ------------ Bosque Leasing LP $304,680 P.O. Box 8216 Waco, TX 76714 Bosque Leasing LP $228,082 P.O. Box 8216 Waco, TX 76714 American Express $190,000 P.O. Box 5207 Fort Lauderdale, FL 33310 BMW financial Services $160,000 Internal Revenue Service $160,000 Bosque Leasing LP $131,323 Bosque Leasing LP $123,349 Ravenswood Enterprise, Inc. $91,325 USA Financial Services, LLC $75,870 ABC Financial Services $70,550 Crossroads General Agency $56,157 GE Capital $48,483 Scott C. Long Professional Association $42,000 Port of Miami $37,112 Aequicap $37,112 Coach Financial Services $35,000 New World Lease Funding $30,000 Nesenoff & Millenberg, LLP $22,000 Platinum Plus for Business $21,000 Highway Charter Bus Service $16,000 DELPHI CORP: Court Lifts Stay Letting Cadence Pursue Patent Suit ---------------------------------------------------------------- The Honorable Robert D. Drain of the U.S. Bankruptcy Court for the Southern District of New York modifies the automatic stay to allow Cadence Innovation LLC to proceed with the Patent Litigation for the sole purpose of liquidating the Cadence Claims. Judge Drain directs Delphi Corp. and its debtor-affiliates and Cadence to select a mediator and complete a mediation of the Patent Litigation no later than March 24, 2007. For reasons stated in open Court, Judge Drain denies Cadence' request for allowance and payment of the Cadence Postpetition Claim, without prejudice. Debtors Objection John Wm. Butler, Jr., Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, in Chicago, Illinois, argued that the Court should deny Cadence Innovation LLC's Lift Stay Motion for these reasons: -- It would be a waste of the Court's resources to adjudicate the Motion as Cadence's Claim is still disputed and unliquidated and is likely to remain so for at least a year; -- To properly defend their estates against Cadence's Claim at trial, the Debtors would need to allocate resources that are otherwise being used in their restructuring efforts and claims resolution process; -- The Lift Stay Motion reveals no change in circumstances other than Cadence's desire to have its Claim determined ahead of other creditors, at a time and in a forum of its choosing; -- If Cadence' request is granted, other parties with general unsecured litigation claims may seek similar relief, forcing the Debtors to defend against numerous motions to modify the automatic stay; and -- Even if Cadence prevails in the Patent Litigation, there would be no insurance proceeds available with which to pay it. Cadence's Response Cadence sought relief from the automatic stay so that it may obtain a judgment and a determination as to whether the Debtors are actively infringing on its Patents, and not to "jump in front" of other creditors or to enforce its judgment, Dennis J. Connolly, Esq., at Alston & Bird LLP, in Atlanta, Georgia, explained. Contrary to the Debtors' present position, the automatic stay is not intended to provide a permanent shield against all litigation, Mr. Connolly pointed out. Furthermore, the Debtors have not offered any proof to support their position that granting relief to Cadence will negatively impact their efforts to reorganize or negatively impact creditors, Mr. Connolly averred. Mr. Connolly argued Cadence' request is warranted on these grounds: -- The automatic stay cannot be used to facilitate the Debtors' continuing violation of Cadence's federally protected rights in the Patents; -- The Debtors' creditors are being harmed by allowing the Debtors to continue manufacturing infringing airbag covers since for each of those airbags, Cadence is entitled to a postpetition administrative priority claim that must be paid in full and in cash prior to the Debtors' exit from bankruptcy; -- The Debtors have argued that determining the cost associated with their bankruptcy estates is crucial to the formulation and confirmation of a plan of reorganization; thus, liquidating the Action is crucial to the Debtors' estates; -- As federal patent laws grant Cadence the exclusive right to manufacture products based on the Patents for an exclusive period of time, Cadence will be substantially prejudiced if the Debtors are allowed to continue manufacturing infringing airbag covers; -- To the extent Cadence obtains a favorable determination in the Patent Litigation, Cadence will return to the Bankruptcy Court so that its judgment may be properly administered in the context of the Debtors' cases; and -- To the extent the Cadence Claims remain unliquidated, the Debtors will continue their efforts to impermissibly limit Cadence's ability to obtain full relief. Mr. Connolly noted that the Patents will expire in 2010, 2012, and 2012. "Without this Court's recognition that Cadence is entitled to an allowed, albeit unliquidated, claim against the Debtors' bankruptcy estates, Cadence will be unable to preserve the rights conferred by Section 1129 of the Bankruptcy Code," Mr. Connolly contended. "In addition, because Cadence's administrative priority claim arises out of the Debtors' intentional violation of Cadence's federally protected patent rights, the Debtors should be required to pay Cadence immediately upon liquidation of the Cadence Claims." Troy, Mich.-based Delphi Corporation (OTC: DPHIQ) -- http://www.delphi.com/-- is the single largest global supplier of vehicle electronics, transportation components, integrated systems and modules, and other electronic technology. The Company's technology and products are present in more than 75 million vehicles on the road worldwide. The Company filed for chapter 11 protection on Oct. 8, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-44481). John Wm. Butler Jr., Esq., John K. Lyons, Esq., and Ron E. Meisler, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, represent the Debtors in their restructuring efforts. Robert J. Rosenberg, Esq., Mitchell A. Seider, Esq., and Mark A. Broude, Esq., at Latham & Watkins LLP, represents the Official Committee of Unsecured Creditors. As of Aug. 31, 2005, the Debtors' balance sheet showed $17,098,734,530 in total assets and $22,166,280,476 in total debts. (Delphi Corporation Bankruptcy News, Issue No. 55; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000). DELPHI CORP: Two Panels Want to File Discovery Motion Under Seal ---------------------------------------------------------------- The Official Committee of Unsecured Creditors and the Official Committee of Equity Security Holders seek permission from the U.S. Bankruptcy Court for the Southern District of New York to file under seal a joint expedited motion to compel documents and testimony improperly withheld as privileged, pursuant to Section 107(b)